Princeton University has agreed to make a one-year voluntary contribution of $1.7 million to Princeton Borough in 2012, an increase of $500,000 over the 2011 contribution, with the understanding that $250,000 of the contribution will be used to offset expenses the borough incurs in connection with the consolidation of the borough with Princeton Township into a new Town of Princeton. The consolidation will be effective as of Jan. 1, 2013.
The University has also agreed to contribute $300,000 toward an expected expansion of the Princeton Firehouse on Witherspoon Street, if and when that expansion occurs. That contribution would likely be made to the consolidated Town of Princeton. The University also has agreed to continue to make an annual contribution of $20,000 to the Princeton Fire Department, a commitment that carries over from the six-year borough-University contribution agreement that expires on Dec. 31, 2011.
The University is the largest taxpayer in the borough, and its voluntary contribution is in addition to its annual tax payment. The University's tax bill on borough properties in 2011 was $3.5 million.
